PNGX says trade declined in ’20

By DALE LUMA
PNG Stock Exchange (PNGX) chairman David Lawrence says overall trade numbers on the PNGX declined last year.
The total market capitalisation of the 12 listed companies was K91.89 billion.
He said PNG Air Ltd remained suspended for failing to provide audited accounts.
Niuminco, a mineral exploration company, also remains suspended.
“We are seeing an increase in the number of trades on the market but the overall value and volume is down a bit on last year,” Lawrence told The National.
Of the 12 companies, six are listed on both the PNGX and ASX (Australian Securities Exchange).
They are Newcrest, Oil Search, Bank South Pacific Financial Group Ltd, Kina Securities, Coppermoly and Steamships.
Lawrence said the impact of the Coronavirus (Covid-19) on the market and the state of the PNG economy were mixed, depending on the sector in which companies operate in.
“Companies with activities in tourism and logistics have been impacted while others such as in NGP Agmark in agriculture have seen positive results.
“The impact of Covid-19 will be negative on the market next year, especially if the vaccination rate remains at its very low levels.
“The ongoing foreign exchange restrictions are also a negative for overseas investors looking at PNG listed companies.”
Lawrence said the 2022 general election would have an impact as markets were generally flat in the uncertain period leading up to an election.
“Two positive signs for 2022 are an increase in the number of enquiries about listing during 2021 and an increase in enquiries from potential new small local investors,”he said.
“We believe there are a small number of local companies currently working towards listing on PNGX in the next one to two years, which would be good for the market and will open up new opportunities for investors.”
He said the PNGX was working on new products and services.